European Commission President Ursula von der Leyen has proposed a €800 billion defense plan, dubbed “ReArm Europe,” aimed at bolstering the continent’s military capabilities and increasing defense spending. The five-point plan includes suspending strict budget rules to allow member states to ramp up defense expenditures without triggering excessive deficit procedures.
Von der Leyen outlined the proposal after US President Donald Trump clashed with Ukraine’s Volodymyr Zelenskyy at the Oval Office, leading Washington to suspend all military aid to Ukraine. The plan would create fiscal space of approximately €650 billion over four years if EU member states increase defense spending by 1.5% of GDP on average.
The commission will also provide €150 billion in loans to EU governments for defense, while improving military equipment including air and missile defense, artillery systems, missiles, drones, anti-drone systems, and cyber preparedness. Germany’s outgoing Foreign Minister Annalena Baerbock called the plan “an important first step” towards strengthening EU defense.
Von der Leyen emphasized the need for additional aid to Ukraine and a “quantum leap” to strengthen EU defense, stating that Europe is living in the most momentous and dangerous of times. The proposal comes as transatlantic relations are strained following Trump’s direct outreach with Russian President Vladimir Putin on ending the war in Ukraine.
Source: https://www.dw.com/en/eus-von-der-leyen-proposes-800-billion-defense-plan/a-71819582